Attacq DIPS rose by almost 50% in H1’25

Listed property group Attacq has delivered outstanding interim results with a more than 40 per cent surge in distributable income and dividends for the period. The company has also increased its guidance for the full year of 2025, showcasing a very optimistic outlook. Attacq CEO, Jackie van Niekerk, attributes this exceptional performance to various factors, including the significant GPF transaction finalized in October 23. This transaction not only impacted the company's debt positively but also led to cheaper debt margins. Additionally, wins in solar energy, net rental income, and the complete acquisition of the remaining 20 per cent stake of Mall of Africa contributed to the strong financial standing. Van Niekerk highlighted the remarkable capital allocation strategy and operational metrics as key drivers of the impressive interim results. One of the key drivers of Attacq's performance has been the demand for space across different sectors. Van Niekerk mentioned a renewed energy from multi-tenanted clients in the logistics space, with a strong inquiry pipeline for new developments at Waterfall Junction. The company also observed increased inquiries in the office collaboration space, with clients prioritizing quality, business continuity, and a safe environment. Van Niekerk also highlighted the growing interest from blue-chip companies and the overall surge in demand across retail, office, and logistics sectors. Attacq's strategy in balancing local and global brands has proved successful, with a current emphasis on local brands experiencing a higher uptake. The company noted that local brands are transitioning from online to physical stores, while global brands like H&M and Zara are selectively choosing their locations. The South African market shows great potential, with local favorites like ShopRite Checkers performing exceptionally well, showcasing a strong preference for local brands. The conversation also delved into consumer behavior during specific periods, such as the two-part system and festive seasons like Black Friday. Van Niekerk noted a substantial growth in the home furnishing category during October and November, indicative of increased consumer spending. Moreover, the company observed a rise in travel agency sales, suggesting a resurgence in discretionary spending. All these factors point to a positive trend in consumer behavior, potentially influenced by economic conditions and interest rates. Despite past challenges like load shedding and water shortages, Attacq has ensured that all its properties are well-equipped with backup generators to maintain business continuity. The company has also been proactive in adopting solar power solutions to reduce reliance on diesel energy. Addressing water scarcity, Attacq has undertaken CAPEX projects to enhance water backup storage across its properties, emphasizing sustainability and reduced consumption as critical objectives. Looking ahead, Attacq's deal flow activity remains robust, with approximately 2.7 billion rand worth of gross value deals in the pipeline. The company's focus on collaboration hubs and logistics centers is set to stimulate the economy and drive construction activity. Van Niekerk expressed confidence in the deal flow from the logistics side and hinted at upcoming exciting deals. In conclusion, Attacq's impressive growth in distributable income and dividends, coupled with a positive outlook for 2025, reflects the company's strategic vision and strong operational performance. The firm's strategic focus on demand-driven expansion, local brand promotion, and sustainable practices positions Attacq as a key player in the property sector.